3 CEFs That Have Soared Up to 47% Annualized (and 1 Is Still a Bargain)

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3 CEFs That Have Soared Up to 47% Annualized (and 1 Is Still a Bargain)

Here’s some good news in these uncertain times: Most investors who’ve invested for the long haul are well-equipped to deal with this selloff. That’s because, over the last five years, stocks have been on an absolute tear.

In that period, the S&P 500 has delivered an average annual total return of 19.1%, as of this writing. That’s more than double the average of about 8% in the last century.

Looking at Various Time Frames Can Skew Our View

Think back five years for a moment. Back then, the stock market’s prospects looked bleak, indeed, as we were at the beginning of the pandemic-driven selloff.… Read more

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You Ask, I Answer: Are These 8% Dividends Too Pricey?

I recently got some reader feedback that made me realize something: When it comes to our favorite income investments—8%+ yielding closed-end funds (CEFs)—there are still a lot of misconceptions out there.

It’s key that we put those right, because they’re causing some investors to miss out on CEFs, and the big (and often monthly) dividends they provide. And I know I don’t have to tell you that in turbulent times like these, high payouts like those are a lifesaver.

This reader wrote in response to a recent piece I wrote about how CEFs can be better than ETFs, pointing out two things:

  1. The three CEFs I mentioned in the piece have higher expense ratios than passive funds.

… Read more

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These 6.8% Dividends Are Quietly Minting Millionaires

If you’re like most income investors, you’re on the hunt for stocks and funds that can stand up to a storm these days.

So that’s what I’m going to give you below—in the form of three “all-weather” closed-end funds (CEFs) kicking out an outsized 6.8% average yield.

They’ve stood firm through every headwind imaginable—wars, pandemics, inflation, you name it—and have done nothing but profit over the long haul. Through all that, this trio has kicked out annualized total returns (with dividends reinvested) of 15%+ each.

“Shock-Proofing” Your Portfolio, Crushing ETFs

These funds’ stellar returns come from both the sector they focus on—tech—and smart management that’s kept all three going strong.… Read more

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How to Buy AI on Sale (And Make It Pay You 13% a Year)

This week’s AI panic has opened up a rare bargain window in big tech names that were disposed of with the DeepSeek bathwater.

Nosebleed Nvidia (NVDA)—which we warned about here and here—is a “stay away.” But there are tech dividends worth exploring, with some paying us up to 13% a year.

Investors have been herded into the same AI and technology names that have been at the forefront for years, and—shockingly—those shares have largely been priced for perfection.

Chinese AI upstart DeepSeek has shown that deep pockets are not needed to build smart AI models. This should have come as no surprise, as China is home to many smart technologists.… Read more

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Dump This “Sacred Cow” Investment Rule (and Break Free With 5.5%+ Yields)

If you have a wealth manager working for you, I have one simple piece of advice: Seriously consider moving on from them (or managing your investments yourself) if they recommend following the “60/40” rule.

It simply says that most people should invest 60% of their assets in stocks and 40% in government bonds for retirement.

In a moment, we’ll talk about one fund we’d have completely missed out on by following 60/40 ourselves—or by signing on with a wealth manager who does so. (And not to worry, this one is still available for us to tap into for a solid 5.5% dividend, with upside.)… Read more

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2 CEFs With Big Dividends (But Only 1 Is Worth Your Time Right Now)

Closed-end funds (CEFs), with an average yield of around 8%, are terrific for just about any investor—especially those looking to their portfolios to help pay the bills.

Heck, even if you’re not leaning on your CEFs for income, those big payouts are gold—you just reinvest them to boost your portfolio’s value and book an even bigger income stream going forward.

But of course, not all CEFs are great investments, with some best avoided unless they trade at big discounts to net asset value, or NAV, the key indicator of value for these funds. And sometimes even a great fund isn’t the best one to buy, despite a big yield and an impressive record.… Read more

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These Unsung Buys Crush Hedge Funds, Yield 8%+

Hedge funds have a big problem: They can’t beat the market anymore.

If you read the press, you’ll see a lot of concern over this. If hedge funds aren’t cutting staff, they’re struggling to find talent to try to boost their returns. Moreover, the industry mostly keeps shuffling people within its ranks, undercutting the stability needed to make outperformance last.

So it’s kind of strange that hedge funds are managing more money than ever. The industry was managing $1 trillion in the mid-2000s, a milestone at the time. But now hedge funds are managing more than $4 trillion globally. And they’re still growing.… Read more

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The 1 Dividend Secret That Lets You Build a $1.3-Million Retirement

If you’re like me, you read (or watch) a lot of personal-finance gurus. And nearly all of them make one critical error when giving advice to folks hoping to save for retirement (or stay retired, if they’re already there).

They put a lot of emphasis on cutting costs—we hear quite a bit about how we should limit small things like your streaming services, for example! Of course, most retirees (save for the very wealthy ones) will tell you that keeping costs reasonable is important.

But what I don’t hear enough from these “gurus” is how to find the high-quality income investments we need to get into retirement faster—and stay there once we arrive.… Read more

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This Huge Tech Dividend Is 16% Off (But Is It a Buy?)

Every now and then here at Contrarian Outlook, we have a “big-dividend shootout”—we pit two big payers against each other and see which one wins out.

It’s a great way for us to accomplish two things as investors: 1) Grab the safest high dividends with the most upside, and 2) Sharpen our portfolio-building skills.

My beat is closed-end funds (CEFs), which are known for huge (and often monthly paid) dividends. These actively managed funds are a bit of a unique challenge to analyze because they each hold a lot of assets—often numbering in the hundreds.

Luckily there are a few indicators we can use to single out the best ones.… Read more

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This 60% Tech Yield Is Getting Attention (Is It Safe?)

We all love high yields—but every now and then we run across one here at Contrarian Outlook that’s so high it’s a blaring warning sign.

Case in point: the 60.4% yield (no, I didn’t misplace a decimal there!) on a tech-focused fund called the YieldMax TSLA Option Income Strategy ETF (TSLY).

That’s right: buy this one and, going by the headline yield, you could recover your upfront investment in less than two years through dividend payouts!

But, well, not so fast: because in this case (as in pretty well all cases when dividend yields strain the bounds of reality), some income-hungry investors are being drawn to a high yield that not only can’t last, but masks poor long-term performance, too.… Read more

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